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Sophisticated 
multi-signature 
solutions 
Bitcoin
about me 
background 
•Martin Albert, 33 years old 
•Diploma in Chemistry, Diploma in Business Economics 
•Business Consul...
Now more about bitcoin 
lets see… 
A system to transfer “value” from person to person 
Inventor: 2009 – “Satoshi Nakamoto”...
a story about an apple 
www.bitalo.com 
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
But now a virtual apple 
www.bitalo.com 
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
Now you require a ledger 
www.bitalo.com 
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
Basis is the P2P Network 
Like Skype or Bit-torrent 
Download client, install, start 
When connected you can tell your 
co...
Bitcoin? 
- decentralized, peer to peer.... 
- no banks or 3rd parties needed 
- secure system / everything with encryptio...
Transaction in Detail 
General principle: 
I take a certain amount of bitcoins 
I take my public key as sender 
I take pub...
Normal Bank Transaction 
Normal Bank account: 
Person and Account are connected 
Only Sender, Receiver (and Bank) 
Know ab...
Status Quo - Intermediary 
www.bitalo.com 
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
Status Quo - Intermediary 
www.bitalo.com 
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
Status Quo - Intermediary 
www.bitalo.com 
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
Status Quo - Intermediary 
www.bitalo.com 
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
Status Quo - Intermediary 
www.bitalo.com 
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
Problem solved? – Bitcoins 
- Centralized Service?? 
- Give up control over my coins?? 
- Security issues with hackers? 
-...
so…where should I store my Bitcoins 
www.bitalo.com 
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
Get Bitcoins 
What if a service exists where you…. 
- DO NOT give up control over your coins 
- DO NOT allow even the admi...
Trick: Multi-Signature wallets 
www.bitalo.com 
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
“Normal” Transaction 
How does it work? 
www.bitalo.com 
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
Multi-Signature 
Part 1: Create multi-signature address 
-Get two or more Bitcoin addressees. 
-Combine them using addmult...
Multi-Signature 
Part 2: Spending coins from multi-signature wallets 
-Create a transaction draft using createrawtransacti...
Multi signature wallets 
www.bitalo.com 
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
Multi signature wallets 
www.bitalo.com 
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
Hackers and admins see encrypted wallets 
www.bitalo.com 
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
Two-Factor authentication
And the last resort: Dead Man’s Switch 
www.bitalo.com 
Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
Bottom line 
- It IS possible to create REAL NO TRUST Bitcoin 
services 
- Multi-Signature wallets, no one can ever access...
THANK 
YOU 
FOR watching
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IDCEE 2014: Bitcoin: Sophisticated Multi-Signature Solutions That Keep Money Fully Under Your Control - Martin Albert (CEO @ Bitalo AG)

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http://idcee.org/p/martin-albert/

Martin is a full-time Bitcoin enthusiast from the very beginning of the cryptocurrency era. As a voluntarist, he thinks that statism is a crime and thinks about how to make the Bitcoin world a better place. For him, the most exiting thing is its political aspect - you and only you control your wealth. Having lost quite some Bitcoins in the past, Martin understood that centralized exchanges are in no way different than normal banks, where you give up control over your money. This inspires him to create a service for the Bitcoin world where the Bitcoins are always safe and in control of the users.

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IDCEE 2014: Bitcoin: Sophisticated Multi-Signature Solutions That Keep Money Fully Under Your Control - Martin Albert (CEO @ Bitalo AG)

  1. 1. Sophisticated multi-signature solutions Bitcoin
  2. 2. about me background •Martin Albert, 33 years old •Diploma in Chemistry, Diploma in Business Economics •Business Consultant in the field of chemicals legislation •EU bureaucrat •2011 Discovered Bitcoin, early adopter •2012 Full time Bitcoin enthusiast •2013 Investor, CEO at Bitalo AG www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  3. 3. Now more about bitcoin lets see… A system to transfer “value” from person to person Inventor: 2009 – “Satoshi Nakamoto” As White Paper Open Source project www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  4. 4. a story about an apple www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  5. 5. But now a virtual apple www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  6. 6. Now you require a ledger www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  7. 7. Basis is the P2P Network Like Skype or Bit-torrent Download client, install, start When connected you can tell your computer to confirm transactions Computer will confirm Bitcoin transactions Reward for confirmations in Bitcoins www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  8. 8. Bitcoin? - decentralized, peer to peer.... - no banks or 3rd parties needed - secure system / everything with encryption - somehow anonymous... --> SO WHAT? www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  9. 9. Transaction in Detail General principle: I take a certain amount of bitcoins I take my public key as sender I take public key of recipient Transaction is signed with my private key to prove that I am sender Transactions are public and sent to the bitcoin network. Network checks if transaction is valid and “confirms” www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  10. 10. Normal Bank Transaction Normal Bank account: Person and Account are connected Only Sender, Receiver (and Bank) Know about the transaction Bitcoin: Transaction is PUBLIC, But it is NOT known who is behind the account (unless known) One person can have unlimited bank accounts www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  11. 11. Status Quo - Intermediary www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  12. 12. Status Quo - Intermediary www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  13. 13. Status Quo - Intermediary www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  14. 14. Status Quo - Intermediary www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  15. 15. Status Quo - Intermediary www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  16. 16. Problem solved? – Bitcoins - Centralized Service?? - Give up control over my coins?? - Security issues with hackers? - Sites close over night??? --> SAME PROBLEM AS BEFORE! www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  17. 17. so…where should I store my Bitcoins www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  18. 18. Get Bitcoins What if a service exists where you…. - DO NOT give up control over your coins - DO NOT allow even the administrators to access your coins - IS NOT possible that Hackers can steal coins, even when the server is compromised -DO NOT need to trust the trading party, as still an escrow is in place? EVEN when the site is closed? www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  19. 19. Trick: Multi-Signature wallets www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  20. 20. “Normal” Transaction How does it work? www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  21. 21. Multi-Signature Part 1: Create multi-signature address -Get two or more Bitcoin addressees. -Combine them using addmultisigaddress JSON-RPC command -As a result, you will get a special Bitcoin address starting with „3”. -The resulting Bitcoin address is fully functional and can receive coins. -You can create different combinations of M-of-N addresses. It means that you can specify how many private keys are needed to spend the coins. www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  22. 22. Multi-Signature Part 2: Spending coins from multi-signature wallets -Create a transaction draft using createrawtransaction JSON-RPC command -Sign the resulting transaction data with one of private keys, utilizing signrawtransaction command -provide it with correct details, which may include: public key and redeem script -Pass partially signed transaction data to other party, which repeats this process -Finally, you broadcast the transaction to the network (using sendrawtransaction or another means) www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  23. 23. Multi signature wallets www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  24. 24. Multi signature wallets www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  25. 25. Hackers and admins see encrypted wallets www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  26. 26. Two-Factor authentication
  27. 27. And the last resort: Dead Man’s Switch www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  28. 28. Bottom line - It IS possible to create REAL NO TRUST Bitcoin services - Multi-Signature wallets, no one can ever access the bitcoins without your consent - Thanks to MePIN two factor authentication not even if your PC is compromised -With timed backup-transaction coins are even safe when service is closed down or server data is deleted www.bitalo.com Phone: +49 6322 9419292 | e-mail: martin@bitalo.com
  29. 29. THANK YOU FOR watching

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